Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India requiring 17 runs to win versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged man is seeing the game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has actually made more than 10 employ the last 30 minutes - not to discuss the match however to keep modifying his bet.

Five minutes previously his money was on Australia, today as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

"I think India is winning, make the modification," he tells his bookmaker on the phone.

And a few minutes later on his forecast becomes a reality, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he says with a childlike glee.

For more than 3 years he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting syndicates thrive in the country.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting market deserves some $150bn a year. And much of that gambling money is directed towards cricket.

With no legal avenue, punters position bets using their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these deals involve so-called "black money", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any kind of sports betting in India, but unlike in the US which has a law prohibiting web gaming, there is nothing comparable here.

And overseas wagering companies are utilizing this loophole to lure Indians. Even though there are no online wagering operators based out of India, a lot people have actually signed up accounts with overseas firms.

"Legally you can escape [with this], as the law is unclear for online gambling," says Mumbai- based attorney HP Ranina.

But regardless of this, it is "offline sports betting", done through telephone call which dominate the market.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to suggest modifications in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have actually been banned for 2 years after some players and group officials were discovered guilty of fixing parts of the match at the request of bookies.

The panel also argues that legalised wagering will bring in tax earnings for the exchequer that could amount to $2bn a year.

Even gamblers feel that legalising sports betting is a move in the best instructions.

"I don't mind paying some money out my earnings, as long as I can gamble openly," states our cricket bettor.

It would also open a big company opportunity for certified bookmakers and international online wagering business to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by helping make deals associated with gambling more transparent.

"If you work alongside sports betting business, you will have an extremely reliable technique of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of also think, that the taxes levied on the gambler and the bookmaker will have to be sensible to make it appealing enough for them to bet legally.

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) people would not wish to leave an audit path by entering the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to put big bets will never ever bet lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a difficult idea to offer.

"Even however numerous people are associated with some sort of gaming - it's still a questionable concern for many," states our unnamed punter.

And given that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting gambling in their territory.

"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the idea having actually been endorsed by an official panel for the very first time, a minimum of a debate has ignited around a subject - which previously was thought about a taboo.